The multi-ethnic state of Ethiopia, uniting more than 80 distinct ethnic groups on its territory, is unique on the African continent, regarding that it has never been colonized by the Europeans and that it has introduced a Federal Democratic Republic in 1991 based on ethnicity. Given by the Constitution of 1994, each ethnic group has the right to self-determination up to secession. But when measuring the success of federalism and democratic principles in Ethiopia, considering the essential requirements of a genuinely federal division of power, it becomes obvious that still a far way has to be gone. The book is structured in two main parts. First, there will be a methodological and theoretical part, examining the chosen methodological approach and terms, working in the field of comparative politics. Second, follows the case study of Ethiopia, whereas the history, especially referring to the different political phases and systems (assimilationist policy, secessionist path, 'accommodationist' approach) of the country is analysed. Moreover, the legal background and the cornerstones of Ethiopia's Constitution of 1994 are carried out.